Traveling can be expensive, but it doesn’t have to be as expensive as you think. There are plenty of ways to save money to travel more. While most people save money by looking for cheap flights or saving money on accommodation, there are smaller things that can wreak havoc on your wallet. We’re going to go over the most common travel budget busters that people don’t think of.
From the confusion of airline add-ons to the allure of shimmering trinkets, your wallet faces ambushes at every corner and currency exchange. Knowledge is the shield that protects your bank balance from being plundered by unforeseen expenses.
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Alcohol
When traversing new destinations, experiencing local nightlife can be an exhilarating part of travel. However, alcohol expenses can swiftly derail a travel budget if not managed carefully. Bars and restaurants often mark up drink prices significantly, leading to an unwelcome surprise when the credit card statement arrives. To keep alcohol expenses in check, consider the following strategies:
- Pregame Gatherings: Organize a pre-outing get-together in your accommodation. Purchasing alcohol from a grocery or convenience store allows for socializing without the hefty price tag of bar-served beverages. While the term pre-gaming may bring back college memories, it doesn’t (have to) mean getting wasted. We purchased a 3 Euro bottle of wine in Italy to enjoy while we got ready. We got to enjoy a bottle of locally sourced wine, without the price tag.
- BYOB: Bring your own bottle. Before dancing the night away or relishing a fancy dinner, enjoy your own selection of drinks, thus limiting the need to order pricey equivalents while out. Check to see if the restaurant allows this before heading out.
- Strategic Sipping: Should you decide to indulge at bars, opt for fewer and perhaps local options that might be more affordable.
Airline & Baggage Fees
When planning your flight, be conscious of potential travel budget busters that may hike up your expenses. While basic economy flights are relatively cheap, they often come with more fees! This is also true for budget airlines like Spirit or Frontier. A lesser-known fact among travelers is that certain airlines may charge for carry-on items, checked baggage, or even printing your boarding pass at the airport. Always review airline fees and luggage charges before booking to avoid these unexpected costs. This small step allows you to make informed decisions on what bags to take and accurately calculate the total cost of your flight.
For those considering an upgraded airline seat, weigh the benefits against the expense. If you’re already checking bags, the extra comfort and amenities provided with an upgraded seat might balance out the additional costs, making it a worthwhile investment for a more comfortable journey. Anything over 5 hours I usually splurge for the extra legroom. Planning for this helps me plan out my travel budget.
ATM & Credit Card Fees
When managing your travel budget, it’s crucial to factor in potential ATM and credit card fees, as they can quickly add up and inflate your expenses. Each ATM transaction could cost you $2-10, and international withdrawals often come with an additional 1-3% foreign exchange fee. While ATM’s are usually the best way to withdraw local currency, be aware of this fee so it doesn’t come as a surprise. Or, get a bank that ha
In contrast, selecting a credit card with no foreign transaction fees can notably reduce your costs, making it a smarter choice for international travel. However, be cautious of charging too much to your card; if not paid off promptly, interest and fees could hike the cost of your trip by up to 30%.
Key Tips for Handling Travel Finances:
- Inform Your Bank: Let your bank know about your travel plans to avoid card blocks and surprise charges. Some banks don’t require this anymore, so check!
- Choose the Right Card: Opt for a credit card that offers no foreign transaction fees.
- Monitor Credit Impact: Keep in mind that your credit score could be affected, and missing payments post-travel can have lasting repercussions.
Finally, regularly reviewing your credit card statement ensures you are not overcharged, assuring your travel budget remains intact, even after the trip!
Mobile Data
Don’t be surprised by unexpected charges for using their phones abroad. To prevent hefty bills, it’s crucial to understand how to manage mobile data usage. Some cell phone providers charge $10 a DAY for data. Some of those are exactly 24 hours (2pm Tuesday to 2pm Wednesday) while others are just Tuesday. Be sure to read your contract so you know what to expect.
Here’s how you can save money:
- WiFi Over Data: Use WiFi whenever possible. Cafes, hotels, and airports often offer free access, keeping you connected without the fees.
- Service Provider Plans: Contact your carrier before your trip. Look for international packages – for example, Google Fi‘s Unlimited Plus plan is great for travelers. We upgrade our plan the day we leave and downgrade the day we get back, it’s super easy and no SIM is needed. We have unlimited data in 150+ countries – even had service while gorilla trekking in the DRC! (Use Referral code R668HM for $20 credit!)
- Data Roaming: Always turn off mobile data and roaming, especially when crossing borders, to avoid surprise costs. If you’re not sure how to do this, put it on Airplane Mode.
Transportation Costs
When planning your travel budget, don’t let transportation costs become a budget buster. A ride from the airport to your hotel may seem minor, but multiple transfers can quickly add up.
Here’s a quick guide to keep unexpected expenses at bay:
| Mode of Transport | Estimated Cost | Tips |
|---|---|---|
| Public Transportation | $ | Often the most economical option; check schedules ahead. |
| Ride-Sharing Apps | $$ | Fares fluctuate; rides during peak times or from busy locations can be costly. |
| Rental Cars | $$$ | Consider fuel costs and parking fees. Look for specials or use rewards programs. |
| Taxis | $$$ | Set price rides can be cost-efficient for groups, otherwise, they can be pricey. |
| Airport Shuttles | $ | May be provided complimentary by hotels or as a lower-cost option from the airport. Check hotel amenities |
Key Transportation Tips:
- Research all transportation options from the airport before departure.
- Factor in holiday weekends and peak travel times which can inflate transport costs.
- Use public transportation if available, especially in countries like Japan which are known for reliable transit systems.
- If relying on ride-sharing apps, track fare estimates ahead of time to budget accordingly.
- Always account for fuel costs during a road trip and have extra cash for unforeseen price hikes.
Avoid Tourist Traps
When curating your travel budget, dodging tourist traps can keep your expenditure in check. These attractions often charge premium prices for everything from entry tickets to refreshments. For instance, the Eiffel Tower may add summit access fees, and you might find yourself paying extra just to use your camera at certain sites, like Abu Simbel in Egypt. Additionally, while the entrance to places like Tivoli Gardens might seem reasonable, full access often requires additional outlays that can quickly add up.
To outsmart these budget busters, savvy travelers often utilize free admission days or seek discounted time slots for popular destinations—allowing them to enjoy the same experiences at a fraction of the cost. For example, the Louvre Museum is free on the first Friday of the month after 6 p.m.
Another benefit to avoiding tourist traps is blending in with the locals. Local joints tend to offer more authentic and affordably priced options.
Eating Out 3x a Day
When exploring new destinations, I completely understand that the tantalizing local cuisine can be irresistible. However, frequently eating out is a notorious travel budget buster. A family of 4 dining out for each meal might spend upwards of $300 daily. Costs mount quickly, especially when restricted to tourist hotspots known for inflated prices.
Seeking local eateries off the beaten path not only offers a more authentic dining experience but also significantly slashes expenses. Moreover, indulging regularly in snacks or junk foods while on the go can sneakily eat away at your funds. All of a sudden you’ve spent $40 on snacks and still have to pay for dinner.
Smart travelers often opt for accommodations providing complimentary breakfasts – this simple amenity can ensure a wholesome start to the day without dipping into your wallet. Furthermore, selecting lodging with a kitchenette allows travelers to cook some meals themselves, further controlling costs and dietary preferences. Spencer and I love to go to the grocery store to stock up on local snacks and breakfast items (pastries and muffins are easy to find). It’s also a neat experience to see what other cultures have in their stores. Snacks and food are huge travel budget busters, so be mindful!
Souvenirs
This is one of those, do as I say, not as I do tips. I love my souvenirs, but they can often become unintentional travel budget busters. While they may seem like small purchases at the moment, the costs add up quickly, especially for items like trinkets and shot glasses that are all too common in gift shops around the world. No judgment though, I have an ever-growing mug collection and a shot glass collection from my 20’s (that is no longer growing). Accumulating these keepsakes can not only strain your wallet but also lead to extra baggage fees if your luggage is too heavy, adding an unwanted expense when you return from your journey. In fact, I know some travelers who pack an extra bag JUST for souvenirs to take home.
To keep your travel budget in check, be mindful of the souvenirs you choose. Resist the urge to collect dust-collecting ornaments and consider alternative mementos. For a cost-effective and space-saving solution, apps like Keepsayk provide a platform to organize your travel photos into digital memory books. If you prefer something tangible, you can find deals through sites like Coupon Sherpa to create physical photo books without breaking the bank.
If you’re like me and prefer to actually have souvenirs, be sure to add this to your travel budget so you aren’t surprised. I always get a mug and a Christmas ornament from my travels, and try to get something to display in my house (art, a basket, a figurine, etc) so I know what I’m on the lookout for and can budget accordingly.
Emergency Situations
Emergencies can arise unexpectedly during travel, and being financially prepared is crucial. When setting your travel budget, always include an emergency fund to cushion the impact of any sudden financial needs. This foresight helps you manage minor mishaps and major crises with less stress.
For health-related emergencies abroad, having access to funds is vital. Whether it’s for medication, hospital visits, or other medical needs, the ability to pay promptly can influence the care you receive. Always have a backup credit card with enough available credit to serve as a safety net for such situations.
Moreover, investing in comprehensive travel insurance can be a game-changer. Coverage for medical emergencies means that hefty expenses won’t derail your finances or your travel plans.
Final Thoughts
When it comes to avoiding travel budget busters, it’s essential to plan ahead, be mindful of hidden fees, and prioritize experiences over material things. By taking the time to research all-inclusive offers, being cautious with mobile data usage, and being creative with dining options, you can ensure that your vacation remains within budget and memorable for all the right reasons. Remember, a little preparation goes a long way in preventing financial stress and allowing you to fully enjoy your getaway.
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